What is a Bounce Back Loan Top-Up?
Bounce Back Loan Top-Ups were announced by the Chancellor on 2 November 2020 to help businesses impacted by the coronavirus who have already taken out a Bounce Back Loan, but did not anticipate the effects of the pandemic being so long lasting. Top-Ups are available for all eligible businesses whose original Bounce Back Loan was for less than 25% of their annual turnover declared in their application form (up to a maximum £50,000 and minimum £1,000).
A Bounce Back Loan Top-Up can be added to your original Bounce Back Loan, meaning your original capital and interest repayments will increase based on the amount of your Top-Up. The term of your Bounce Back Loan will remain unchanged.
You can only receive a Top-Up from the lender who provided your original Bounce Back Loan and you can only apply for one Top-Up to your Bounce Back Loan.
When will I be able to apply for a Bounce Back Loan Top-Up?
The Bounce Back Loan Top-Ups scheme is now live. You can apply through online banking if you are eligible.
What are the eligibility criteria for a Bounce Back Loan Top-Up?
You can receive up to 25% of your annual turnover declared in your original Bounce Back Loan application form or £50,000, whichever is the lesser, and a minimum of £1,000. If you have not already received a Bounce Back Loan for these amounts, you will be able to apply for a Top-Up. The maximum of your original BBL and Top-Up can not exceed £50,000. You will be unable to apply for a Top-Up if your existing Bounce Back Loan is in default, you have already received a Top-Up or you have already repaid your Bounce Back Loan.
What turnover did I use in my original application and can I change it?
You do not need to provide your previous turnover, the amount that you can top up will be automatically provided. Under the scheme rules, your application for a top-up must be based on the turnover you declared in your original BBL application, you cannot change this turnover, even if your business circumstances have changed or you think you entered it incorrectly.
Can I receive a Bounce Back Loan Top-Up from a different lender?
No. You can only receive a Top-Up loan from the same lender that provided your original Bounce Back Loan.
Is a Top-Up a second loan?
No. You will only have one loan, but the amount of that loan is increased through the Top-Up. This increase will be documented in an amendment to your existing loan agreement. Your repayments will be greater than those shown in your original Loan Summary Sheet as the total amount you owe will increase after receiving a Top-Up. We will provide you with a new Summary Sheet setting out your repayments. The loan term will remain the same.
Will I pay interest on the Top-Up?
Yes. Interest will accrue on the Top-Up at the rate applicable to your existing Bounce Back Loan (2.5%) as the Top-Up will be added to your existing Bounce Back Loan, but will be covered by the Business Interruption Payment for the first 12 months from the date of your existing Bounce Back Loan.
When will I start making repayments on my Bounce Back Loan Top-Up?
As your Top-Up will be added to your existing Bounce Back Loan, you will start making repayments after the first 12 months from the date of your existing Bounce Back Loan. The capital and interest of your repayments will be based on the total amount of your Bounce Back Loan, which is made up of the original loan amount plus the Top-Up amount.
What is the term for my Bounce Back Top-Up?
The Top-Up will be added to your existing Bounce Back Loan and the term will remain unchanged at 6 years from the original loan payout.
I’ve been declined for a Bounce Back Loan Top-Up, does this affect my original loan?
It might, depending on the reason you were declined for a Top-Up. As part of your application for a Top-Up we’ll complete some required fraud checks as agreed with the British Business Bank. These checks may highlight things that cause us concern and that we might investigate. Each Top-Up application will be reviewed individually and we’ll always discuss with applicants individually any issues that are identified as part of our review where we can.